The Federal Reserve should raise interest rates next week and if it doesn't it will be bad for the economy, former Wells Fargo chairman and CEO Dick Kovacevich said Friday.
"They should do it now. Everything is aligned. The market expects it sometime, so do it sooner than later. It will be expected because it's not a big deal. If you remember all the anxiety and concern about QE3 when it was ended, it was a big yawn and it will be a big yawn this time," he said in an interview with CNBC's "Closing Bell."
What's more, he believes not increasing rates also sends a bad signal.
"If you don't raise rates, you are signaling that you have no confidence in the continued economic growth of our economy. That would be a disaster."
The Fed holds its two-day meeting beginning Wednesday, when it could opt to begin hiking rates. The central bank has indicated in the past that it would like to raise rates this year. However, it has stressed the decision will be based on economic data.